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Investing.com - UBS raised its price target on Expand Energy (NASDAQ:EXE) to $145.00 from $144.00 while maintaining a Buy rating on the stock. The company, currently trading at $116.94 with a market capitalization of $27.8 billion, is trading near its 52-week high of $123.34. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value estimate.
The investment firm sees Expand Energy as well-positioned to capitalize on the rising natural gas price environment, with capabilities to increase production volumes and shareholder returns while simultaneously reducing debt. The company has demonstrated strong execution with 35.6% revenue growth in the last twelve months, operating with a moderate debt level.
UBS expects Expand Energy to reiterate its fiscal year 2025 volume and capital expenditure guidance, along with its outlook for volumes to reach 7.5 billion cubic feet equivalent per day (Bcfepd) on a budget of approximately $3.0 billion in 2026.
The firm forecasts that Expand Energy will significantly increase its Tranche 3 share buyback program and variable dividend during the second half of 2025, following the achievement of its $500 million fiscal year 2025 net debt reduction target during the third quarter.
UBS maintained its Buy rating on Expand Energy stock, reflecting continued confidence in the company’s strategic positioning in the natural gas market.
In other recent news, Expand Energy has seen a series of analyst upgrades and price target increases. Bernstein SocGen initiated coverage with an Outperform rating and a price target of $150, citing a positive outlook on natural gas and potential benefits from increased liquefied natural gas (LNG) demand. Mizuho (NYSE:MFG) raised its price target to $142, maintaining an Outperform rating, while noting concerns about Expand Energy missing second-quarter 2025 EBITDAX and cash flow per share estimates. Citi also increased its price target to $140, maintaining a Buy rating and highlighting the company’s production growth stability and positive long-term commodity fundamentals.
KeyBanc raised its price target to $135, emphasizing a "cash return inflection" and confidence in sustained mid-teens return on equity. Piper Sandler increased its target to $139, focusing on strong well productivity and the company’s ability to capitalize on rising natural gas demand. The various analyst assessments reflect a consensus on Expand Energy’s potential to leverage its diverse portfolio and strong market positioning. Expand Energy’s strategic plans include adding rigs and targeting significant production growth by 2026, aligning with long-term demand dynamics in the natural gas sector.
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